Global social inequality worsened last year. Half of the world’s population owns less than 2% of global wealth while the top 10% holds 76%, according to the World Inequality Lab’s 2022 report, which also includes sections on gender inequality and carbon emissions. In Latin America, women generate 35% of total income, below Europe’s average of 39%. According to the study’s authors, reducing inequality is important for the global economy to function well. Beyond social investments, good company strategic plans include product and service research and development that reduces inequality.
Brands and Causes
Our Vision: a growing number of consumers are committed to fighting social inequality. Successful companies will reflect this position in communication strategies as well as in their products and services.
Our Reading List: Approximately $4 billion are donated every year through workplace giving. 65% of Fortune 500 companies have matching gift programs while 40% have volunteer programs. One-third of employee donors stated that they’d be willing to make larger donations if their company matched their gift.
According to Insider Intelligence’s Latin American Trends to Watch in 2022, 94% of surveyed Latin American believe companies should increase investment in social and environmental initiatives. They want to see the private sector support local efforts that address employment, inclusion, and income generation among vulnerable communities.
Sustainable Finance
Our vision: sound governance practices create opportunities for companies to access credits backed by investors concerned with climate risks and social inequality.
Our Reading List: In 2021, companies obtained record funding through sustainable securities, totaling $859 billion. Although social bonds comprise a small percentage of the total amount (about $150 million), this figure was three times higher than in 2019. In total, sustainable bonds amounted to 10% of all bonds issued in 2021.
Corporate Sustainability
Our Vision: the fastest-growing companies manage sustainability practices systemically because doing so allows them to foster diverse and collaborative environments. These, in turn, grant them a greater ability to adapt to constantly changing situations.
Our reading list: Recent studies provide valuable perspectives and insights into planning for 2022. Deloitte highlights the importance of purpose and inclusive marketing. An IBM survey shows that 70% of 19,000 surveyed consumers don’t mind paying more for products that are more sustainable.
Deep Dive
The book The Systems Work of Social Change by François Bonnici and Cynthia Rayner highlight how organizational and tactical practices changed systems via effective social transformation in Africa, Asia, Europe, and the Americas.
Let’s talk!
Brian Burlingame, CEO
+1 (305) 860-1000
www.jeffreygroup.com
socialimpact@jeffreygroup.com